The Seventh Central Pay Commission vide Para 9.1.4 had recommended that all the interest free advances being granted to the Central Government employees should be abolished. The Government’s decision in this regard has been conveyed by the Ministry of Finance vide their OM No. 12(1)/E.II(A)/2016 dated 07.10.2016. According to the instructions contained therein, the Advance of Leave Salary in addition to six other advances has been abolished.

2. The Government’s decision in respect of abolition of advance of leave salary has been considered by the Ministry of Railways in consultation with Finance Directorate. It has been decided to abolish Advance of Leave Salary w.e.f. 07.10.2016. The cases where the advances have already been sanctioned need not be reopened.

3. The provisions in respect of advance of leave salary are contained in Rule No.548 of Indian Railway Establishment Code (IREC), Volume-I, 1985 Edition (Reprint Edition-2008). In view of this, in exercise of the powers conferred by the proviso to Article 309 of the Constitution, the President is pleased to direct that Rule No.548 of IREC Vol.-l may be amended as in the enclosed Advance correction Siip No, 131

4. This issues with the concurrence of the Finance Directorate Railways.